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a. Given the following Treasury bond yield information, what is the shape of the yield curve? Market Rates Maturity Periods 1 year 2 years 3
a. Given the following Treasury bond yield information, what is the shape of the yield curve? Market Rates Maturity Periods 1 year 2 years 3 years 4 years 5 years 10 years 20 years 30 years Years 1.00 2.00 3.00 4.00 5.00 10.00 20.00 30.00 Yield 10.50% 10.00% 9.50% 8.75% 8.00% 5.00% 4.50% 4.00% + Based on this yield curve, if you needed to borrow money for longer than 1 year, would it make sense for you to borrow short term and renew the loan or borrow long term? E WATE Short or Long
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